China’s Domestic Tungsten Price Stabilizes as the Cost Gradually Reduces

Analysis of latest tungsten market from Chinatungsten Online

China’s domestic tungsten price continue to remain stable on November 4, 2021 with the cost gradually reduces and the demand keeps quiet. In early this month, participants will mainly wait and see the new guide prices from listed tungsten companies. 

The supply side is expected to continue to be controlled by environmental protection and safety measures. Due to the goal of carbon peaking and carbon neutrality, as well as the consideration of non-renewable and scarce resources, the release of tungsten raw material capacity is limited. In addition, prices may continue to rise in the context of global inflation, further increasing the production pressure on mining and smelting enterprises. 

The demand side is still affected by the negative impact of the epidemic. Consumption in the fields of machinery manufacturing, aerospace, and automobiles is still shrinking to varying degrees than before. Although the domestic market is recovering well, and the rapid development of the new energy industry has brought new opportunities to the market, the overseas situation is volatile. In addition, international logistics and transportation pressures further affect spot liquidity.

The support from the cost side weakens, but the cost is expected to stabilize at a relatively high level compared to the previous period. Under the intervention of national measures to maintain supply and stabilize prices, the recent coal price trend has been effectively suppressed. The market expects that the prices of raw and auxiliary materials of tungsten products will be adjusted. Therefore, the offer is gradually cautious, partly due to the increase in bearish sentiment due to demand pressure. However, due to cost considerations such as environmental protection and safety, human resources, rising prices, and the impact of the tight power supply in the fourth quarter, the market has limited room for correction, and the industry hopes for rational operation.

Prices of tungsten products on November 5, 2021

Picture of tungsten acid 

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